Short answer
Designers and marketers should prioritize the strategic planning and execution of service 'Place' – encompassing location, accessibility, and distribution channels – as the primary driver for customer preference in the Thai low-cost airline market.
- Field
- Innovation & Markets
- Source
- American Journal of Industrial and Business Management (2013)
- Method
- Quantitative research using questionnaires.
- Sample
- 400 participants
- Evidence
- Strong effect
For domestic low-cost airlines in Thailand, the strategic placement and accessibility of services (Place) significantly outweigh other marketing mix elements in influencing customer attitudes and needs. This innovation & markets research insight is drawn from a 2013 study published in American Journal of Industrial and Business Management. Using Quantitative research using questionnaires. with 400 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and marketers should prioritize the strategic planning and execution of service 'Place' – encompassing location, accessibility, and distribution channels – as the primary driver for customer preference in the Thai low-cost airline market.
Service 'Place' is the Primary Driver of Low-Cost Airline Choice in Thailand
For domestic low-cost airlines in Thailand, the strategic placement and accessibility of services (Place) significantly outweigh other marketing mix elements in influencing customer attitudes and needs.
American Journal of Industrial and Business Management · 2013
Key Findings
- 01Demographic factors (gender, age, education, income, occupation) did not significantly affect attitudes and needs in selecting domestic low-cost airlines.
- 02The 7 P's of service marketing significantly influence attitudes and needs.
- 03Place had the strongest influence, followed by Product, People, Process, and Physical Evidence.
- 04Price and Promotion had the lowest influence among the 7 P's.
Application
Design takeaway
Designers and marketers should prioritize the strategic planning and execution of service 'Place' – encompassing location, accessibility, and distribution channels – as the primary driver for customer preference in the Thai low-cost airline market.
How to apply
When designing or marketing a service, map out all customer touchpoints and assess their accessibility and convenience. Consider how 'Place' can be leveraged to create a competitive advantage, even if it means investing more in distribution and location strategies than in direct price discounts.
Project actions
- 01When researching a market, consider the full marketing mix, not just the obvious elements like price.
- 02Think about how the 'Place' of a service can be designed to be more convenient for users.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Investigated the influence of the comprehensive 7 P's of service marketing.
- +Used a reasonably large sample size for quantitative analysis.
Limitations
This study focused on a specific geographic location (Bangkok) and a particular industry (low-cost airlines), so its findings may not apply universally.
Reliability & validity
The use of a questionnaire with a defined sample size and significance level suggests a structured approach to data collection and analysis, contributing to reliability. However, the validity of attitudes and needs being solely attributed to the 7 P's without further qualitative exploration could be a point of discussion.
Think critically
How might the influence of 'Price' and 'Promotion' change if the market becomes more saturated or if economic conditions shift significantly?
Design Principles
"In service design, the perceived convenience and accessibility of the service offering (Place) can be a more potent differentiator than price or promotion."
Understanding the hierarchy of marketing mix influence is crucial for resource allocation in market strategies. Prioritizing 'Place' can lead to more effective customer acquisition and retention in competitive markets.
What This Means for Your Design
For budget airlines in Thailand, where you can easily get the service (like convenient airports or easy booking) matters more than how cheap the ticket is.
How to use in your project
- 1.Use this study to justify prioritizing convenience and accessibility in your design, especially if your target market is similar to Thai consumers.
- 2.Reference this when discussing the importance of the marketing mix in your design context.
Add to My Project
Quick Cite
Paragraph starter
Research indicates that in the Thai low-cost airline market, the 'Place' element of the marketing mix, encompassing service accessibility and convenience, exerts a stronger influence on consumer attitudes and needs than price or promotion (Charoensettasilp & Wu, 2013). This suggests that for similar service-oriented design projects, prioritizing the strategic placement and ease of access to the service offering can be a more impactful design strategy than solely focusing on cost reduction or advertising.
Source
American Journal of Industrial and Business Management
Attitude and Needs of Thai People in Selecting Domestic Low-Cost Airlines
journal · 2013
View sourceQuestions About This Research
- What does the research say about service 'place' is the primary driver of low-cost airline choice in thailand?
- Designers and marketers should prioritize the strategic planning and execution of service 'Place' – encompassing location, accessibility, and distribution channels – as the primary driver for customer preference in the Thai low-cost airline market. Evidence: American Journal of Industrial and Business Management (2013).
- Why does "Service 'Place' is the Primary Driver of Low-Cost Airline Choice in Thailand" matter for design?
- Understanding the hierarchy of marketing mix influence is crucial for resource allocation in market strategies. Prioritizing 'Place' can lead to more effective customer acquisition and retention in competitive markets.
- How can designers apply this research?
- Designers and marketers should prioritize the strategic planning and execution of service 'Place' – encompassing location, accessibility, and distribution channels – as the primary driver for customer preference in the Thai low-cost airline market.
- What were the main findings?
- Demographic factors (gender, age, education, income, occupation) did not significantly affect attitudes and needs in selecting domestic low-cost airlines.. The 7 P's of service marketing significantly influence attitudes and needs.. Place had the strongest influence, followed by Product, People, Process, and Physical Evidence.. Price and Promotion had the lowest influence among the 7 P's.
- What research method was used?
- Quantitative research using questionnaires. with 400 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2013 journal from American Journal of Industrial and Business Management.
- What should I do differently in my next project?
- When designing or marketing a service, map out all customer touchpoints and assess their accessibility and convenience. Consider how 'Place' can be leveraged to create a competitive advantage, even if it means investing more in distribution and location strategies than in direct price discounts.
- What are the limitations?
- The study was limited to Thai individuals in Bangkok, potentially limiting generalizability to other regions or demographics within Thailand or other countries. The influence of Price and Promotion might be underestimated if not integrated with the 'Place' strategy.